Tax information for tenants of commercial property
Devolved tax legislation implemented on 1 April 2015 mean that some tenants in Scotland must, by law, submit a new tax return to Revenue Scotland every three years to ensure they have paid the correct amount of LBTT.
The first time a three year lease review return became due was therefore 2018.
A return has to be submitted:
- Every three years from the effective date of the lease
- At the point where the lease is assigned
- At the point where the lease is terminated.
It is the responsibility of the tenant to submit the return – even if the lease has not changed or if no tax is due. Failure to do so will result in a penalty.